This company has been going up a lot because of news that Temasek Holdings is looking for buyers to take over this company.
In mid 2013, STATSChipPac closed a KL factory due to profitability concerns, and to consolidate its operations in China over several phases.
In a highly competitive semiconductor industry, STATSchipPac have to constantly invest in new technology to meet its customer needs. And if their foresight in technology goes wrong, it may end up like Blackberry or Nokia.
Source: http://www.straitstimes.com/breaking-news/money/story/stats-chippac-close-kl-plant-laying-1100-workers-20130628
The risks to invest in such company is not going to generate good returns over the long run because the risk over rewards might not be worth it. It has to constantly pump in cash flow to purchase new technology to keep up, and as competitive become stiff, prices of semi conductor products may decrease.
My advice is to stay away from this stock if you are a long term investor. Why would its parent want to sell this company away? The risk just isn't worth it.
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